CMI
Cummins Inc.
Is CMI Halal?
Engines and power systems are generally permissible, and the current asset-based financial ratios pass.
What You Should Know
Cummins' March 31, 2026 filing reports 22.32% interest-bearing debt/assets, 9.24% identifiable liquidity/assets, 26.54% receivables-plus-cash/assets and 0.38% disclosed interest income/revenue. The core manufacturing activity is generally permissible, while customer end use and financial-services exposure remain qualitative.
⚠️ Concerns
- •Diesel and power-generation environmental impact requires qualitative review
- •Small equipment-finance activity may involve interest-based lending
- •Interest income was 32 million in the quarter
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
7,686 / 34,445
3,182 / 34,445
9,142 / 34,445
32 / 8,398
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.32%, liquidity/assets is 9.24%, receivables plus cash/assets is 26.54% and interest income/revenue is 0.38%; business and financing activity remain qualitative.
- Financial
- Pass
- Overall
- Incomplete
The examined total-assets ratios are below their limits; business and financial-services classification remains qualitative.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below 33%; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
Cummins manufactures engines, components, distribution products and electrified power systems. The core industrial activity is generally permissible, while equipment finance, defense and downstream customer end use require qualitative review.
Limitation: The filing does not classify every customer, contract, financing arrangement or end use under a Sharia standard.
Purification
Interest income is disclosed, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Cummins' March 31, 2026 Form 10-Q.
- Debt includes loans payable of 451, commercial paper of 349, current maturities of 157 and long-term debt of 6,729.
- Marketable securities of 568 are treated as identifiable interest-bearing securities; equity-method investees are excluded.
- The filing reports 32 of interest income and 148 of equity, royalty and interest income from investees.
- The filing does not provide a universal prohibited-revenue numerator for customer end use or financial services.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →